WASHINGTON (Reuters) – The United States government is offering a total of $12 billion in grants and loans to automakers and suppliers in order to facilitate the retrofitting of their plants for the production of electric vehicles and other advanced vehicles, announced Energy Secretary Jennifer Granholm during a press conference on Thursday.
In addition, the Biden administration will provide $3.5 billion in funding to domestic battery manufacturers, Granholm revealed.
Out of the $12 billion earmarked for advanced vehicles, $2 billion will be sourced from the Inflation Reduction Act, which was passed by Democrats last year. The remaining $10 billion will come from the Energy Department’s Loans Program Office, Granholm explained.
The acceleration of grants and subsidies to support the conversion of existing auto plants into electric vehicle manufacturing facilities could help the White House address criticism from automakers and the United Auto Workers (UAW) union regarding proposed environmental regulations aimed at promoting the adoption of electric vehicles.
Last month, the UAW expressed concern that a rapid transition to electric vehicles could jeopardize thousands of jobs in states like Michigan, Ohio, Illinois, and Indiana. UAW President Shawn Fain has actively campaigned to save a Jeep factory in Belvidere, Illinois, which Stellantis has announced plans to close. However, the automaker has indicated that the factory could potentially receive a new product if government assistance is secured.
These funding initiatives aim to support the transformation of the automotive industry towards cleaner and more sustainable technologies, while also addressing economic concerns related to job security and market demand.
Timothy Gardner reporting from Washington; Editing by Matthew Lewis
Credit: The Star : Tech Feed
